Net interest cost

Net interest cost (NIC)

Net Interest Cost

The cost of capital for a bond issuer; that is, a calculation of how much an issuer will spend in interest on one of its bonds. The way the net interest cost is calculated involves the average interest rate weighted for the time to maturity. One increases or decreases the net interest cost according to various discounts or premiums that the issuer allows or is paid. Critics contend that calculating the net interest cost is less accurate than the total interest cost.

Net other income and expenses for fiscal 2017 were an expense of $97 million as compared to an expense of $116 million in fiscal 2016, primarily due to higher positive fair value adjustments on the investment in preferred interests of Aireon LLC and a lower interest expense, partially offset by higher net interest costs related to employee benefits and higher foreign exchange losses.

Empirical results comparing full and nondisclosure states suggest that debt issuers in full disclosure states save about 14 basis points on their net interest costs, compared to issuers in nondisclosure states.

They are required to pay pounds 19m in net interest costs, but that is dealt with comfortably by revenues (match-day revenue doubled to pounds 91m in 2006/07 alone) generated by the move to the Emirates Stadium.

Announcement of competition: The contracting authority intends to conclude a framework agreement on debt management, follow-up and counseling, whose purpose is to manage the principal's loan portfolio in a way that minimizes net interest costs over time.

Net interest costs of ` 284 crore and amortisation costs of ` 316 crore contributed to the drop in profit at Bharti Airtel, which also took a hit of ` 261 crore because of fluctuations in the foreign exchange rate and increased tax burden of ` 109 crore.

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